Business Studies

Discussion must be in current APA format and must include a reference list. Reference sample make sure to include DOI-Drollinger, T., Comer, L. B., & Warrington, P. T. (2006). Development and validation of the active empathetic listening scale. Psychology & Marketing, 23(2), 161-180. https://doi.org/10.1002/mar.20105 There needs to be 2 scholarly references (2017-2022) and 1 biblical references from the King James bible in the paper Minimum of 275 words Current APA format must be used.
• Compare/contrast the findings of others with your research.
• Compare how the findings of others relate/add to the concepts learned in the required readings.
• Share additional knowledge regarding the key topic that relates to the thread.
Discussion to reply to:
Key Topic: Mass Customization

Key Concept Explanation

Standardization across the board in production used to be the name of the game, but consumers’ preferences have become increasingly more demanding, causing companies to get creative and offer variety. Mass customization is an operations method by which a business will produce goods or services in a variety that will satisfy target customers’ wants and needs. This is accomplished by providing flexibility while also keeping costs low. Many modern organizations have shifted from mass production to mass customization, which has resulted in quicker time to market and more product options, while remaining cost-effective (Choi et al, 2019, pp.412-428). In addition, being able to offer such variety to the consumer helps with competitive advantage as well as meeting consumers’ increasing demands. This topic was chosen because the phrase “mass customization” seemed like an immediate oxymoron. How can something that is customized be produced in mass? I was very interested in learning more of the details about how the process is a success.

Comparison

In our textbook, we learned that while it used to be believed that increasing efficiencies in the production process would require a decrease in flexibility, it is no longer the case. Most of the articles I came across in my research echoed the idea that the “old” view was that to have one, the other must go. Decades ago, the continuous improvement effort brought with it the knowledge that such a trade-off in efficiency and flexibility did not have to happen. This knowledge is what led to mass customization and its implementation in the production process. Those who adopted mass customization sought to “produce low-cost, high-quality outputs in great variety” (Meredith and Shafer, 2020).

Mass customization is not for all companies and great efforts should be executed to maximize the benefits of the strategy. Keys to success in mass customization are responsiveness, inefficiency reduction, and great supplier relationships (Hitzegrad et al, 2022). Additionally, organizations must understand what the consumers’ preferences are and what is driving those preferences (Hagenmaier et al, 2019, pp.204-221), offer levels of clearly defined products and/or memorable experiences (Lang et al, 2021, pp.224-241), utilize social capitol (Frynes et al, 2017, pp.137-147), and seek to continuously improve as technology advances and preferences evolve.

Article Summary

Choi et al (2019, pp.412-428), agreed with our text that the efficiency/flexibility trade-off was not always the result and that those seeking to lower their costs by removing inefficiencies did not always have to sacrifice flexibility, but rather could capitalize on the cost savings while offering variety to the consumer. For example, due to Dell’s close relationships with its suppliers and its focus maximizing all efficiencies, it can offer vast customization of computers based on the consumers’ preferences. This is a great example of Hitzegrad’s (2022) point that having a great supplier relationship can help with mass customization.

The article introduced an additional topic of inventory management as a challenge to this strategy, which as a former inventory manager for two firms, was one of my first concerns. Holding inventory costs money, so one would think the more variety a company offers, the more inventory must be on hand, and the result is higher costs. The authors of the article conducted a “systematic literature review on the topic, with the objective of identifying specific methods to attain good performances of inventory management for the MC scheme (Choi et al, 2019, pp.412-428).

The results concluded that the keys to success of mass customization as it specifically relates to inventory management is to have a clearly defined planning process. In this process, a substantial level of basic inventory should be held, communication from the customers should be accepted, a clear plan for overstock should be developed, and over-customization should be avoided. Additionally, the sentiment of maintaining a great relationship with suppliers was echoed.

Biblical Integration

It is quite challenging to consider the relevance of mass customization to God’s law, but I will start with the notion that God’s law is love. Love Him and your neighbor (New International Version, 1978/2011, Matthew 22:37-40). We have heard the message of love since the very beginning (New International Version, 1978/2011, 1 John 3:11), and it stands the test of time. To Love God and your neighbor, you must serve others. Even non-Christian companies can relate to this effort, as they seek to serve the needs and wants of their consumers through mass customization. Just as we use our gifts to serve others (New International Version, 1978/2011, 1 Peter 4:10), organizations use their gifts – their innovations/offerings in the same way. Sure, one method involves a cost, and one does not, but the base idea remains.

Application

The key topic of mass customization is already alive and well in today’s real-world business climate, and as more success stories come to light and more consumers utilize social media to share their delight in a product or service, I would submit that the strategy will continue to improve. Top leaders in organizations should analyze what their product or service is and see if any changes can be made to remove inefficiencies, lower costs, and provide more customer satisfaction by pivoting to offer more flexibility and variety. As stated earlier, it is not for everyone, but a wise step would be to review the potential. It could very well be the step that elevates an organization into a new level of success.

ANSWER

Discussion Reply 1

I agree with the post that consumer preferences are now more demanding, thus causing companies to offer variety and get creative. For this reason, companies have moved from standardization to mass customization. Mass customization entails an operations method where a business produces services and goods in a variety to satisfy the target needs and wants of different consumers through the personalization of custom-made products. The custom-made products have lowered the unit cost linked to mass production. Mass customization has effectively gained and retained clients and built long-term connections with customers (Suzic and Forza, 2021). As retailers and consumers continue to co-create new and personalized products, consumers have the chance to buy more favorable products, and the willingness to pay for extra charges increases. Suzic and Forza (2021) support the adaptation of mass customization to produce high quality, low cost in a great variety. Indeed, mass customization is not for all organizations, and great efforts need to be executed to maximize the opportunities and benefits of the approach. Perret, Schuck, and Hitzegrad (2022) stated that inefficiency reduction, responsiveness, and great supplier connection facilitate the success of mass customization.

Guo et al., (2018) argued that inventory management is the main challenge in mass customization. More varieties in a company mean more inventory costs are held, which results in higher costs. Choi et al., 2019 conducted a systematic literature review that indicates that the key to the success of mass customization is inventory management and having a well-defined planning process. I agree with the post that a company using mass customization should avoid over-customization, have a clear plan for overstock and maintain communication with customers to ensure a substantial inventory level. Companies should focus on mass customization to use their gifts to meet customer needs, just as 1st Peter 4:10 urges people to love God and their neighbors and serve others.

References

Guo, S., Choi, T. M., Shen, B., & Jung, S. (2018). Inventory management in mass customization operations: A review. IEEE Transactions on Engineering Management, 66(3), 412-428. http://dx.doi.org/10.1109/TEM.2018.2839616

Perret, J. K., Schuck, K., & Hitzegrad, C. (2022). Production Scheduling of Personalized Fashion Goods in a Mass Customization Environment. Sustainability, 14(1), 538. https://doi.org/10.3390/su14010538

Suzic, N., & Forza, C. (2021). Development of mass customization implementation guidelines for small and medium enterprises (SMEs). Production Planning & Control, 1-29. https://doi.org/10.1080/09537287.2021.1940345